BU405 Chapter Notes - Chapter 1: Strategic Sourcing, Supplier Relationship Management
Document Summary
Immediate supply objectives: quality, quantity, delivery, price, service, and continuous improvement. In large supply organizations, professionals are divided in 2 categories: tacticians: handle day-to-day requirements, strategic thinkers: possess strong analytical and planning skills/ involved in activities such as strategic sourcing. Supply chain management: focus on minimizing costs and lead times across tiers in the supply chain to the benefit of the final customer. Strategic responsibilities: strategic sourcing: long-term supplier relationship and commodity planes with the objectives of identifying opportunities in areas such as cost reduction, new technology advancements, and supply market trends. Lean purchasing/lean supply management: manufacturing; jit inventories kept at a minimal level, and delays between process steps are kept as short as possible. Logistics: movement with any purchasing or supply chain activity; looks at material flow process as a complete system. Value chain: traces a product or service through its various moves and transformations.
